Nelson County Budget Overview June 9, 2020 Public Hearing Fiscal - PowerPoint PPT Presentation

Nelson County Budget Overview June 9, 2020 Public Hearing Fiscal Y ear 2020/ 2021 July 1, 2020 - June 30, 2021

2020 Tax Rates  No change in tax rates.  All tax rates are levied per $100 of assessed value  Real Estate and Mobile Home tax rate $0.72  Personal Property tax rate $3.45  Machinery & Tools tax rate $1.25

Budget Funds  General Operating Fund  S chool Operating,Textbook & Cafeteria Funds  Debt S ervice Fund  Capital Fund  Piney River Water/ S ewer Enterprise Fund

FY21 Proposed Revenues

FY20-21 GENERAL FUND BUDGET COMP ARED TO FY19-20 As of May 2020  FY19-20 $44,449,452  FY20-21 $36,943,981 Decrease - $7,505,471 % Change -16.89% Excluding FY20 Capital Project Funds and Prior Year Balances Used to Offset COVID-19 Tax Relief, Overall Revenues for FY21 Decreased -$363,278 or -1.0% .

FY21 Proposed Revenues By Maj or Category Non-Revenue Receipts Year Ending Balance 1% Proposed Revenues 0.1% Federal Revenues $878,435 2% General Propert y Taxes Other Local Taxes State Revenues $3,957,585 S t at e Revenues 11% General Property Taxes $25,067,980 68% Federal Revenues Other Local Taxes $6,555,285 Non-Revenue Receipt s 18% Year Ending Balance

Local Revenue  FY20 Budget $29,897,592  FY21 Estimates $31,623,265 Overall Increase $ 1,725,673 Percent Change +5.77% Excluding FY20 COVID-19 Personal Property & Machinery & Tools Tax Relief, there is an overall decrease in Local Revenue of -$325,869 or -1.02% from FY20 to FY21.

S ignificant Local Revenue Factors  General Property Taxes reflect a budgetary increase of $1,996,063 (8.0%) in FY21; however without FY20 COVID-19 Personal Property and Machinery & Tools tax relief, General Property Taxes decrease -$55,479 or -0.2%  Local Sales Tax is expected to decrease by -$246,106  Meals & Lodging Taxes are projected to increase slightly (+ $27,128) from FY20; however the effects of COVID-19 on the last quarter of FY20 and FY21 are indeterminate at this time.  Court Fines & Forfeitures are projected to decrease -$111,000  I nterest Earnings are also expected to decrease by -$110,000  Non-revenue Receipts are decreasing -$1,811,623 primarily due to use of bond proceeds in FY20 related to the Nelson Memorial Library expansion and renovation project that will not re-occur in FY21.

S tate Revenue (Excluding Non-recurring Grants) $ 4,052,689  FY20 Budget  FY21 Estimates $3,957,585 Overall Decrease -$95,104 Percent Change -2.3%

Federal Revenue (Excluding Non-Recurring Grants)  FY20 Budget $ 802,641  FY21 Estimates $ 878,435 Overall Increase $ 75,794 Percent Change 9.4 %

All S ources of Revenue  Local $31,623,265  S tate $ 3,957,585  *Federal $ 878,435  Non-Revenue S ources $ 20,000  Y ear Ending Balance $ 464,696 Total $36,943,981 *Up to $1.3M in CARES Act COVID-19 S timulus Funding Is Anticipated to Be Added to FY21 Revenue.

FY21 Proposed Expenditures

FY20-21 GENERAL FUND BUDGET COMP ARED TO FY19-20 As of May 2020  FY19-20 $44,449,452  FY20-21 $36,943,981 Decrease - $7,505,471 % Change -16.89% Excluding Capital Projects and major Non- recurring expenditures, FY21 Expenditures are -$636,978 or -1.7% less than in FY20.

FY21 Proposed Expenditures By Maj or Category Proposed Expenditures General Government Administration Capital Projects 6% 0% Contingency Reserve 3% Judicial Administration Capital Outlay (including debt) Agencies and Non- 3% 4% Departmental 8% Public Safety (including debt) 17% Community Development (including debt) 3% Public Works (including debt) Parks and Recreation 6% 0.1% Health & Welfare 10% Education (including debt) 46% General Government Administ ration Judicial Administ rat ion (including debt ) Public S afet y (including debt ) Public Works (including debt ) Health & Welfare Educat ion (including debt ) Parks and Recreat ion Communit y Development (including debt ) Agencies and Non-Depart mental Capit al Out lay Capit al Proj ect s Cont ingency Reserve

FY21 Expenditures By Maj or Category (% of Total Budget)  S chool Division- Ops, Debt, S ROs and Capital Funds (46% ) $17,163,971  Departmental Operations Including Debt (18% ) $ 6,687,902  Public S afety Including Debt (17% ) $ 6,121,316  Health and Welfare (10% ) $ 3,688,029  Agency & Non-Departmental (including PVCC) (3% ) $ 1,133,617  Capital Outlay (3% ) $ 1,101,799  Refunds & Unallocated Reserve (3% ) $ 1,047,347 Total $36,943,981

Expenditure Highlights: Personnel:  No S alary Adj ustment Included  Includes Required Benefit Increases of $119,687  No New Positions Included  3 Full-time S chool Resource Officers Maintained

Expenditure Highlights: Public Safety & Emergency Services:  No Public S afety Vehicles Included  7.0% increase in Regional Jail Costs  Emergency S ervices Vehicle – Faber Fire Rescue/ Pumper  Emergency Communications and 911 Center Upgrades  Public S afety Microwave Network Upgrade

Other Highlights:  Level Funding of Most County Departments  Level Funding of Most Agency Contributions & No New Agency Funding  Miscellaneous Capital Outlay  Epoxy Animal S helter Floor  Replacement of Water Tank for Tye River S ystem  S oftware and IT Related Items  Recurring Contingency Reserve of $1.02 Million

Local Contribution to S chools  S chool Operations $14,929,887 no change  S chool Nursing Program $164,935 no change  3 S RO’s (General Fund) $207,132 n o change  Reserve for Capital $ 0.00 -$859,913 (General Fund) Total Contribution $15,301,954  S chool Debt $ 1,862,017 * TOTAL SUPPORT $17,163,971 *95% of FY21 Local Real Estate Taxes S upports Local Education; the equivalent of $.68 cents out of every $.72 cents in Real Estate Tax Rate.

Local Contribution to S chools Additional Funding In Recent Fiscal Y ears the BOS Approved Additional Funding For:  Replacement of NCHS Tennis Courts and Other Capital Proj ects  3 S chool Resource Officers (continued in FY21)  FF A National competition travel and championship j ackets/ rings  NMS and NCHS FF A Teaching/ Advising Positions  Elementary S chool Destination Imagination Team(s) National competition travel  Matching funds for a S chool S ecurity grant  Use of end of year savings for capital needs.

Required Local Contribution to S chools for Enrollment of 1,589  Local Composite Index (LCI) –The formula by which the S tate determines the percentage split between S tate and Local Funding for education.  Nelson County’s LCI for 2020-2022 is 0.5604  Based on enrollment of 1,589 students, the County’s required local contribution to S chools for FY21 is $7,491,081 .  FY21 Local Contribution for operations ($15,094,822) exceeds the required local contribution by $7,603,741 .  Board of S upervisors provides the local contribution to the S chool Division; however the S chool Board and Administration decide how to budget and spend those funds.

Other S chool Fund Revenues  S tate: $8,899,418  Federal: $1,900,211  Other: $ 868,352 Total School Fund $26,762,803

FY20-21 Proposed S CHOOL FUND BUDGET COMP ARED TO FY19-20 FY19-20 $27,556,718 FY20-21 $26,762,803 Decrease $ 793,915 % Change -2.8% * Operations Budget only (excludes capital, debt & SRO’s)

S ummary By Fund  General Fund $36,943,981  School Fund $26,762,803  Textbook Fund $644,000  Cafeteria Fund $274,838  Capital Fund $705,251  Piney River Water/Sewer $350,235  Debt Service Fund $3,176,552 $68,857,660